Germany calls on the EU to promote the use of green steel in the automotive industry

Eleven prime ministers of Germany’s federal states have appealed to European Commission President Ursula von der Leyen to strengthen support for the use of low-carbon steel in the EU automotive industry. This is stated in a press release from the German steel association WV Stahl.

The initiative was launched by the states of Saarland and Lower Saxony, where a significant part of the country’s steel production and car manufacturing is concentrated. They insist on establishing clear regulatory interaction between the two sectors to make the transition to climate neutrality coordinated and effective.

The proposal provides for the creation of mechanisms that will motivate car manufacturers to purchase certified steel with low CO2 emissions, thereby reducing the overall carbon footprint of car production.

This approach will be a tool that will simultaneously promote the competitiveness of European companies and the achievement of the EU’s climate goals.

VW Stahl CEO Kerstin Maria Rippel noted that the relevant decisions could strengthen Europe’s industrial base in the face of global competition. According to her, Clean Steel Made in Germany & EU should become the basis for the industrial future, and the creation of market incentives to revive the use of “green” steel is a key condition for attracting investment.

German metallurgical companies are already implementing large-scale modernization and decarbonization projects. However, to accelerate these processes, the association emphasizes the need to ensure a stable regulatory environment and to legislate partnership between the steel and automotive sectors. This will allow both industries not only to reduce emissions but also to preserve jobs and the industrial value of the EU.

A study by economists at the University of Mannheim showed that the loss of its own steel production could cost Germany up to €50 billion annually. Analysts warn that the German economy will be extremely vulnerable in the event of a global steel crisis if the country’s companies close or relocate their production abroad.

This article was published by GMK Center